As the financial effects of Hurricane Florence slowly reveal themselves, it’s likely that the storm will indirectly change some aspects of the property insurance industry and market in the Carolinas. In this article, Milliman’s John Rollins and Nancy Watkins examine the four ways listed below that Florence may alter the insurance landscape.
1. Florence may heighten the urgency for legislative and industry change to increase flood insurance protection across the region and beyond.
2. Florence may provide unprecedented data on wind and flood damage, changing catastrophe models and affecting insurance company strategy.
3. Florence could change the “market of last resort” in affected states.
4. Florence may push established insurers to reduce regional exposure, leaving room for an influx of local specialists.